The Ladybug & the Home Loan

Ladybug! Ladybug! Fly away home—your house is in foreclosure! Once upon a time, Ms. Ladybug was out shopping and her house caught fire. It was not a very big house, but it was all that she had. Fortunately firemen were able to save most of it, and she got a loan to repair the rest. She moved out for the rebuilding, but that compromised her homestead status.

While Ms. Ladybug was living elsewhere, she defaulted on her home loan. It was not a very big loan nor did it have a very high interest rate, but it was more than she could afford on a fixed income and with the added expense of living elsewhere. She very dearly wanted to return to her newly repaired little home, but the Big Bad Bank tried to foreclose instead. Ladybug Ladybug had to file bankruptcy just so she could fly away home.

Financial trouble does not always come in threes; sometimes it comes in legions. Whether you have a single reason or multiple causes driving your debt, seek financial and/or legal counseling (depending on where you are in the default process) to help you review your options and make decisions toward your best credit choices.